Almot Maqolo, Staff Writer 
THE Infrastructure and Development Bank of Zimbabwe (IDBZ) says it is exploring alternative funding sources to boost capital and enhance mandate delivery.
In the first half of 2024, the Government of Zimbabwe injected ZWL6 billion (approximately ZWG2,4 million) into IDBZ as capital support.
IDBZ’s chief executive, Zondo Sakala, noted that although the institution received a capital injection, its value was significantly eroded to US$0,18 million upon release due to rapid exchange rate depreciation in the first quarter of 2024.
Infrastructure Development Bank of Zimbabwe (IDBZ)’s chief executive officer, Thomas Sakala
“The Bank is actively engaging its shareholders for additional capital and exploring alternative capitalisation initiatives that include transfer of valuable land assets, mining claims, regular liquid capital injections through the National Budget and issuance of Treasury Bills for effectual mandate delivery,” Sakala said in a statement accompanying the results.
IDBZ successfully mobilised ZWG34,8 million (approximately US$ 2.56 million) for project implementation during the period under review.
The Bank allocated ZWG27,6 million (US$ 2,03 million) to three key projects: Mabuto Villas, Sierra Apartments and BSAC, with an additional US$ 0,53 million for post-completion enhancements.
Meanwhile, the bank’s money market book expanded by 14 percent to ZWG116 million (US$ 8,5 million), primarily supporting private sector initiatives.
The first half of 2024 saw two projects Hatfield Cluster Housing and Marlborough Residential Apartments successfully developed to bankability, securing funding approval worth ZWG27,9 million (US$2,055 million).
More projects are expected to follow suit by the end of the year.
“The Bank disbursed ZWG23,8 million (US$1,75 million) in support of clients in the infrastructure value chain, irrigation development, tourism and agriculture.
“The value of disbursements was constrained by the tight liquidity in the market,” Sakala said.
In the financials, IDBZ extended its operating loss before tax of ZWG64,9 million in the current period, representing a year-on-year deterioration of ZWG20 million compared to the prior year’s loss of ZWG44,9 million.
Net revenue declined by 81,32 percent to ZWG3,71 million from ZWG91,87 million in the comparative period.
As expected due to inflationary pressures and currency depreciation in the market, operating expenses rose 49,69 percent to ZWG84,68 million from ZWG56,57 million previously.
“To curtail further increases, Management employed several cost containment measures to align costs incurred to revenue generation,” he said.
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